CHENNAI: The 37th GST Council meeting that took place at Goa on Friday, favourably considered many demands of the Tamil Nadu government. Fisheries Minister D Jayakumar thanked Union Finance Minister and Chairperson of GST Council, Nirmala Sitharaman, for reducing tax on many items. An official release here said the tax on wet grinders made of stone, has been reduced from 12 per cent to 5 per cent. This would benefit middle-class people as well as the MSME industries which are engaged in wet grinder manufacturing.
Similarly, the service charge on minor works relating to engineering, has been reduced from 18 per cent to 12 per cent. This would help the industrial organisation in Tamil Nadu. Besides, the service charge on storing food grains, pulses, fruits, vegetables, copra, sugarcane and jaggery has been completely exempted while the tax on spare parts used for jeeps, has been reduced from 18 per cent to 12 per cent.
The long-time demand of exempting dried tamarind, wooden plates and cups from taxation has been accepted. At the meeting, it was also decided to levy a uniform 12 per cent tax on polyethylene and polypropylene being used for making woven or non-woven gunny bags.
It was also decided to exempt tax on fish flakes in Tamil Nadu for the period between July 1, 2017 and September 30, 2019. In addition, if the rent for rooms in hotels is at Rs 1,000 or below, it would be exempted from tax. From Rs 1001 to Rs 7.500, 12% tax will be imposed and for the rent above Rs 7.501, the tax will be 18 per cent. This will encourage the tourism sector in Tamil Nadu.